Which of the Following Statements About the Tax Shield Benefits

Multiple Choice

Which of the following statements about the tax shield benefits from the Capital Cost Allowance(CCA) is correct?

A) If the lessee's tax rate is less than the lessor's tax rate, then the tax shield benefits from CCA would be more valuable to the lessee than to the lessor
B) If the lessee's tax rate is less than the lessor's tax rate, then the tax shield benefits from CCA would be more valuable to the lessor than to the lessee
C) The tax shield benefits from CCA affect neither the lessee nor the lessor
D) The tax shield benefits from CCA would be equally valuable to the lessee and the lessor